Energy access metrics are needed to track the progress towards providing sustainable energy for all. This paper presents advancements in the development of the Multidimensional Energy Poverty Index (MEPI), as well as results and analysis for a number of developing countries. The MEPI is a composite index designed to shed light on energy poverty by assessing the services that modern energy provides. The index captures both the incidence and intensity of energy poverty. It provides valuable insights–allowing the analysis of determinants of energy poverty–and, subsequently insights into policy efficacy. Building on previous work, this paper presents results obtained as a result of both increased data availability and enhanced methodology. Specifically, this analysis (i) includes an increased number of countries, and (ii) tracks the evolution of energy poverty over time of energy poverty in selected countries is reported.

Energy is closely linked with key contemporary global challenges the world faces, including poverty alleviation and climate change. The provision of energy services is often assumed to be a prerequisite to economic and social development. Although not an explicit goal, energy is crucial to the achievement of the Millennium Development Goals (MDGs). While intuitive, such a relationship is difficult to quantitatively ascertain and thus has not been analytically explored in detail in the scientific literature. The correlation between access to energy services and development is, however, often addressed in aggregate, for example by using composite indexes such as the Human Development Index, or by focusing strictly on economic impacts. This paper presents a statistical articulation of the link between energy and various proxies of development, using the MDGs as a framework. The analysis confirms the potentially positive influence of access to energy services on development. It provides a perspective on a number of often employed assumptions about the correlation between energy and development, and challenges claims of its universally positive benefits to specific development priorities. We find that the benefits to development of access to energy services vary considerably.

In addition to a global political commitment, investment and appropriate financial tools are needed to appropriately address energy poverty. This chapter considers only the initial step in this complex agenda, namely the total cost of providing universal energy access. A number of estimates of the cost of providing universal energy access in developing countries have been produced. The methodologies and assumptions vary greatly and are generally highly abstracted. Most studies do not provide a holistic picture, but rather focus on specific aspects, such as the capital cost of energy supply. The chapter begins by reviewing the literature and ‘untangling’ the numbers in order to provide a transparent basis for comparison. It then provides revised estimates for the total cost of universal energy access using the same methodology previously presented. Calculating large global investment requirements is a difficult task and relies on ‘heroic’ assumptions; still, it is often a useful benchmark for policy making and international diplomacy.